Subjects: ECO, JVN, CFG
Government of Canada invests in GM-POSCO to strengthen Canada's EV battery supply chain
New funding to support Canada's first cathode active materials facility
BÉCANCOUR, QC, May 29, 2023 /CNW/ - Today, the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, François Legault, Premier of Quebec, and Pierre Fitzgibbon, Quebec's Minister of Economy, Innovation and Energy, announced support for the first cathode active materials (CAM) facility to be operational in Canada, to be built by a joint venture between General Motors (GM) and POSCO Future M in Bécancour, Quebec.
CAM are key battery materials that consist of components like processed nickel, lithium and other materials that make up about 40% of the cost of a battery. The federal government is investing through the Strategic Innovation Fund's Net Zero Accelerator initiative to support GM-POSCO's more than $600-million project.
The GM-POSCO joint venture, called Ultium CAM, will create around 200 jobs and strengthen Canada's electric vehicle (EV) ecosystem and economy for years to come.
Since early 2022, the government has attracted large anchor investments in battery material processing and cell manufacturing. These investments are not only supporting Canada's shift to a net-zero economy but also creating highly skilled jobs across the country, promoting growth in the automotive sector and positioning Canada as a global EV supply chain leader.
"Canada has everything it needs to be a global leader in battery manufacturing: access to global markets, a highly talented workforce, clean energy, world-leading innovation and all the critical mineral resources necessary to make batteries. This investment in GM-POSCO's new facility in Bécancour will help further position Quebec as a key hub in Canada's growing EV supply chain. This investment is good for the environment and for the economy, and it will ensure well-paying jobs for years to come."
? The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry
"Quebec's battery sector is up and running. This is a historic investment by GM and POSCO. Thanks to its natural resources, talent and renewable energy, Quebec is attracting the giants of the electrification industry. We will be announcing additional transformative projects shortly. Quebec is where the world's greenest batteries will be produced."
? Pierre Fitzgibbon, Quebec's Minister of Economy, Innovation and Energy
"We thank Premier Legault and Ministers Pierre Fitzgibbon and François-Philippe Champagne for their tremendous leadership in supporting our efforts to build a secure, sustainable, scalable and cost competitive EV supply chain to support our fast-growing electric vehicle production across North America. We at GM Canada are particularly proud to be back in Québec growing investments and jobs in alignment with the province's vision for the future of transportation."
? Marissa West, General Motors Canada President and Managing Director
"Our project has stayed on schedule thanks to our excellent local construction and engineering partners. We will soon begin our hiring and training of permanent employees for our operations, which will begin in 2025."
? Cha Chi-gyu, Ultium CAM President
- Today's announcement builds on important agreements that Canada has signed over the last year to bring billions in investments and a large number of new high-quality jobs to our critical minerals and electric vehicle manufacturing sectors.
- In 2022, Canada's automotive manufacturing sector contributed nearly $14 billion to Canada's gross domestic product (GDP) and directly employed over 125,000 Canadians.
- In December 2022, the Government of Canada released the Critical Minerals Strategy to help advance the development of critical mineral resources and value chains across the country. This strategy will advance our efforts to make Canada a global leader in the responsible, inclusive and sustainable production of critical minerals, from mines to manufacturing.
- Budget 2023 announced $500 million over ten years to the Strategic Innovation Fund to support the development and application of clean technologies. The Strategic Innovation Fund will also direct up to $1.5 billion of its existing resources toward projects in clean technologies, critical minerals and industrial transformation.
- The GM-POSCO investment represents a return of General Motors Canada to Quebec, following the closure of its assembly plant in Sainte-Thérèse in 2002.
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